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FY24 Insights Paper - What's happening to the Group and Centre Based Supports Market?

Drawing on the Ability Roundtable 2023-24 financial year benchmarking results, we explore the financial viability of the group-based supports market following the introduction of the new pricing arrangements over the last 12-18 months.

 

The results are concerning. Between the 2022-23 FY and the 2023-24 FY we see a 7.6% decline in the overall median margin of group-based supports providers. The median margin of group-based supports of Ability Roundtable members was 4.0% in 2022-23 FY and has dropped to a median of -3.6% in 2023-24 FY.

 

In this paper, we explore all the possible drivers of these results over a 2-year period, including average revenue, salary and wage related expenses, operating expenses and client participation rates with the new pricing model for Group Based Supports clearly being the 'last man standing' as the most likely cause of the collapse in profitability of Group Based Supports.


The paper recommends that, at the very least, this collapse in profitability requires further interrogation by the NDIA and, if necessary, an adjustment to pricing arrangements to incentivise greater investment in group and centre-based supports, noting the ability of these services to increase social and community outcomes and realise shared benefit in a cost-effective way.



Josh and James sing during a session with St.Giles
Josh and James sing during a session with St.Giles





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